Apple charges more than three times its own cost for the highest storage upgrade on the iPhone 18 Pro, according to an analysis first reported by The Wall Street Journal (via 9to5Mac). The analysis estimates the direct cost of upgrading from 256GB to 1TB at $192, compared with a $600 price increase — a markup of more than 300 per cent.
On the iPhone 17 Pro, the same upgrade cost $400 and Apple’s cost was $42, a nearly 1,000 per cent markup. Apple has historically charged high margins on storage and RAM upgrades, a subject of persistent criticism.
Apple warned in its most recent earnings report that rising memory costs are squeezing its margins and will reduce its holiday quarter profit margins. The company cut its margin guidance for the period. A separate report from SK Hynix warned that Apple faces memory price rises until at least 2030.